The capital market surged on Friday, pushed by readability on the political entrance and strong financial indicators.
Investor confidence soared following the long-anticipated verdict within the £190 million case, delivered by an accountability courtroom in opposition to former prime minister Imran Khan and his spouse, Bushra Bibi, which introduced an finish to weeks of uncertainty and hypothesis.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index surged 1,519.38 factors, or 1.33%, to achieve an intraday excessive of 115,356.12.
By noon, the index demonstrated resilience, pushed by an enhancing steadiness of funds place and the renewed confidence stemming from the judicial choice.
“The market is buying and selling up right now after the choice by the courts. The verdict ends the prevalent uncertainty that had created an overhang for the final two weeks,” mentioned Ismail Iqbal Securities CEO Ahfaz Mustafa.
He added: “The present account surplus posted within the morning additionally helps jog market sentiment, giving traders surety that the federal government remains to be staunchly following the IMF plan and staying the trail.”
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, added: “Better-than-expected steadiness of fee numbers supported market sentiment.”
In a long-anticipated choice, Accountability Court Judge Nasir Javed Rana convicted former Prime Minister Imran Khan and his spouse, Bushra Bibi, sentencing them to 14 and 7 years in jail, respectively.
The courtroom additionally imposed hefty fines on the couple. This verdict, whereas politically vital, offered market contributors with a way of closure, eradicating a component of political uncertainty.
The State Bank of Pakistan (SBP) introduced the UAE’s rollover of $2 billion in deposits, offering much-needed fiscal reduction. Prime Minister Shehbaz Sharif confirmed the event earlier this week following discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan.
Samiullah Tariq, Head of Research at Pak-Kuwait Investment Company, added: “Better-than-expected steadiness of fee numbers supported market sentiment.”
Pakistan’s overseas trade reserves elevated by $30 million to $11.725 billion for the week ending January 10, bolstered by a present account surplus of $944 million through the first 5 months of FY25.
This marks a major turnaround from the $1.67 billion deficit throughout the identical interval final yr. Workers’ remittances additionally surged by 33%, reaching $17.8 billion within the first half of FY25, in comparison with $13.4 billion throughout the identical interval final yr.
The authorities’s ongoing efforts to stabilise the financial system embrace plans to subject yuan-denominated Panda bonds, anticipated to boost $200-$250 million from Chinese traders by the tip of the fiscal yr. Finance Minister Muhammad Aurangzeb expressed optimism about assembly the IMF’s bailout situations and famous the optimistic trajectory in sovereign credit score scores.
Stocks fell for the second consecutive session on Thursday, with the benchmark KSE-100 index reducing by 659 factors amid an absence of optimistic triggers.
KSE-100 index decreased by 658.96 factors or 0.58% to 113,836.74 factors in opposition to 114,495.71 factors recorded within the final session. The highest index of the day remained at 114,884.63 factors, whereas the bottom degree was recorded at 113,630.45 factors.
